The crypto space amid the recent market crash has experienced a severe price drain and Cardano was not spared either. The price, which was exposed to huge criticism for being stagnant for a prolonged period, finally broke out of consolidation but in an inverse way. Therefore, with the squeezed resistance to achieve, the ADA price now appears to be in the safe zone, but eventually, a continued bearish action may be fast approaching.
The ADA price immediately after flipping from the lower support raised high, trending within an ascending triangle. After a brief consolidation along with the lower support of the triangle, for a couple of days, the price quickly broke down from the pattern. However, the price is currently heading strongly towards the local resistance, but the upswing swing cannot be capped as a recovery.
As seen in the above chart, the asset appears to be self-assured, ranging towards the local resistance at $0.59 from the current levels at around $0.54. However, this may be an interim bounce within the triangle as the prices could fall heavily towards the lower support just below $0.4. Mainly due to less volatility and low volume which has weakened the rally to a large extent.
Moreover, since the beginning of April, the bears have dominated the rally and brought down the price by more than 50%. Therefore, the current phase may be a minor relaxation period for the bears as, despite less selling volume, no significant buying is recorded. And hence on this basis, the Cardano (ADA) price could drop hard as the RSI is hovering close to lower support for more than 10 days indicating the bear could be still in action now.
Was this writing helpful?